Latest in Earnings

Image credit:

Facebook continues to rake in money from mobile as video views increase

Nicole Lee , @nicole
01.28.15
Shares
Share
Tweet
Share
Save

While Facebook made waves last year with its investment in Oculus and WhatsApp, it continues to make most of its money from just plain ol' Facebook. And, in particular, from mobile. In the last quarter of 2014, the social networking giant made $3.85 billion. Of that revenue, about $3.59 billion was from advertising, and ads from mobile accounted for a whopping 69 percent of that. That means Facebook now makes almost two-thirds of its money just from mobile advertising. Facebook also posted its overall numbers for 2014, where it made $12.47 billion for the year alone. It marks the first time the company's made over $10 billion in a single year.

And it's no wonder, as the site is still enjoying its spot as top dog in the social networking space -- it now has 1.39 billion monthly active users (up 13 percent from last year) and around 1.19 billion monthly active users just on mobile (up 26 percent). What's even more impressive is the number of people who go to Facebook every day -- that's gone up to 890 million users, while daily active users on mobile skyrocketed to 745 million on average. Facebook's other properties enjoyed growth too -- Instagram recently reached 300 million users; Messenger has 500 million; and WhatsApp has around 700 million.

Part of that growth comes from Facebook's increasing push toward video. In the investor's call today, Mark Zuckerberg said that Facebook now has around 3 billion video views per day. Videos posted per person has increased by 75 percent, while over 50 percent of folks in the US watch at least one video per day. Additionally, over 65 percent of video views are on mobile.

"The evolution of content on Facebook is moving toward richer formats that convey more of the moments that people care about," said Zuckerberg. "Before, a lot of Facebook was primarily text, now it's primarily photos," adding that around 2 billion photos are now shared each day across Facebook's properties. "I wouldn't be surprised if in the future, if that shifted more toward video." He also hinted at an increased focus on the photo and video production side of things in the next few years, with perhaps an easier way for you to create "higher-quality moments."

Of course, with the increased push toward video, expect more video ads too. Sheryl Sandberg, Facebook's COO, said on the call that this presents a great opportunity for the company to grow their video advertising business.

[Image credit: Shutterstock]

From around the web